Plan To Hike Tax On Gas Sent To Cities

June 5, 1985|By Fred Lowery, Transportation Writer

Regardless of what service station operators are charging, the price of gasoline in Palm Beach County may be increased by 2 cents a gallon by Sept. 1.

County commissioners Tuesday put into motion the process of getting agreements from the county`s municipalities to share in the proceeds of the newest tax increase -- the third and fourth cent local-option gasoline tax.

The agreement has already been worked out between the county`s engineering staff and the Municipal League, said County Engineer Herb Kahlert, but must be approved individually by each municipal government. It calls for two-thirds of the new revenue to go to the county and one-third to the municipalites.

``The cities must approve it first, then we will bring it back for your approval,`` Kahlert told commissioners during their meeting in West Palm Beach. ``We hope to begin collections by Sept. 1.``

The hike comes as part of implementing a package of measures approved earlier this year to generate revenue for road construction in the county.

Commissioners, however, indicated they would not consider for at least a year adding the fifth and sixth cent to the county`s gas tax that was authorized by the Florida Legislature last week.

Kahlert told commissioners he estimates the additional 2-cent tax would yield about $6 million a year, with $4 million going to the county`s road program and $2 million distributed to the municipalities for street improvements.

Proceeds from the county`s first first and second cent local-option gasoline tax are being used to support a five-year, $27 million road construction bond issue. Kahlert said the additional 2 cents would be placed into the county`s capital improvement program, which will be developed by the time the commission starts budget deliberations next month.

That program also will include anticipated revenue from the recently increased impact fee placed on new development and a half-mill increase in property taxes for roads approved as part of the comprehensive funding package.

Once the bond issue is paid off four years from now, Kahlert said proceeds from the first 2 cents would be added to the county`s continuing construction program.

Based on the county`s experience with collection of the first 2 cents, Kahlert said he does not foresee a large increase in revenue, despite an increase in the number of vehicles on county roads.

``Revenue has stayed fairly flat because of more fuel-efficient cars,`` he said.

Expressing disappointment that a proposed real estate transfer tax, also a part of the county`s road funding package, did not clear the Legislature this year, commissioners said they were not going to take the bait of an additional 2 cents local option tax dangled in front of them by the Legislature.

``The additional 2 cents was an unacceptable response (to the transfer tax) by the Legislature,`` said Commissioner Ken Spillias, chairman of the Infrastructure Task Force that developed the funding recommendations. ``The task force recommended that you don`t use that additional 2 cents right now.``

``There`s no way I`m going to pass another 2 cents (on),`` Commissioner Jerry Owens said. ``This is just another (thing to) show (that the legislators are) ducking their responsibility of paving state roads with state money and trying to throw it back on the county.``

Commissioner Karen Marcus, however, asked commissioners not to rule out any potential funding source permanently.

``We probably shouldn`t bail out on the state,`` she said. ``I hope you don`t completely close your minds (to the gas tax). The bottom line is raising the money.``